In late March 2017, Clara Miller, director and president of the F.B. Heron Foundation ("Heron"), a philanthropic institution focused on helping people help themselves out of poverty, sat down to put the finishing touches on her President's Letter. In previous years, the letter included Miller's lucid thoughts regarding major changes within the organization and advocated for movement toward a "philanthropic world"-a world in which "all sectors-public and private companies, partnerships, nonprofits, government-[were] actively and broadly philanthropic in their regular operations." In her 2017 letter, however, Miller had more to talk about than ever. Over the prior five years, Miller, who joined Heron in 2011 with over three decades of nonprofit management experience, had led the organization through a strategic and operational transformation. In 2012, she launched a five-year plan to invest 100 percent of the endowment toward better fulfilling the organization's mission. By December 2016, Heron had done just that. In the process, Heron's board and staff reset the organization's investment policy statement and unified the investment program functions to create a new operating model. Miller realized that there was still more work to do. The board and staff saw 100 percent as a "false summit" and looked ahead to optimizing an endowment that was 100 percent aligned for mission. And while Heron had been influential over the years in encouraging others to adopt the organization's original vision of being more than a private investment company, the practice was still rare in philanthropy. It seemed that the goal of a "philanthropic world"-one going beyond the walls of the foundation or philanthropy alone-was more urgent than ever. This case describes how the Heron board went about visualizing the future in terms of leadership, strategic direction, and Heron's own leadership within the philanthropic world.

In the fall of 2017, Beneficial State Bank, a triple bottom line community development bank serving areas of California, Oregon, and Washington, had completed its fourth successive year of normalized profitability while continuing to fulfill its mission of promoting social justice and environmental sustainability. Having grown roughly 20 percent organically by loan and deposit growth annually, as well as through three aligned acquisitions, Beneficial State Bank was well on its way to proving its beneficial banking model as well as the impact of its operations on individuals, communities, and the banking system at large. At the same time, husband and wife creators of the bank, Tom Steyer (MBA '83) and Kat Taylor (JD/MBA '86), found themselves at a crossroads. As the sole providers of capital to the bank during the formation and, as a result of the bank's unique organizational structure, the couple remained the only investors in the bank almost a decade after its founding. With the bank's assets approaching $1 billion, the team envisioned scaling the business for both economic viability and impact to nearly five times the current size in the coming years. In order to achieve this goal, however, the founders would have to consider the introduction of additional investors. This case describes the motivating factors for changing the bank's existing capital structure and includes a discussion of a potential investment option to fulfill these goals. Additional topics include prospective investors, existing capitalization and growth prospects, and the role of mergers and acquisitions.

In the fall of 2015, Beneficial State Bank was set to mark its third successive year of normalized profitability while continuing to fulfill its mission to promote social justice and environmental sustainability. At the same time, husband and wife creators of the bank, Tom Steyer (MBA '83) and Kat Taylor (JD/MBA '86), found themselves at a crossroads. As the sole providers of capital to the bank during formation and, as a result of the bank's unique organizational structure, the couple remained the only investors in the bank almost a decade since its founding. With assets of $420 million, the team envisioned scaling the business for both economic viability and impact to over ten times the current size in the coming years. In order to achieve this goal, however, the founders would have to consider the introduction of additional investors. This case describes the motivating factors for changing the bank's existing capital structure, and potential investment options to fulfill these goals. It includes a discussion of prospective investors, existing capitalization and growth prospects, and the role of mergers and acquisitions.

In July 2013, Kesha Cash transitioned out of her stable role as co-founder of and fund manager for Jalia Ventures ("Jalia"), an initiative investing in early-stage mission driven "businesses operated by entrepreneurs of color," to launch her own impact venture fund focused on underserved communities. Because Jalia had been funded and supported by Serious Change, L.P., a global impact investment fund, Cash was new to the process of fund formation. She had heard that she needed at least $250,000 over a period of two years to get through the fundraising process but managed to launch the fund with a budget of just over a third of that amount in under two years while taking barely any salary. By December 2014, Impact America Fund (IAF) had its first official close at less than 50 percent of the target fund size-a strategic decision made by Cash to begin investing in order to prove that she could source and close deals on her own. With her initial close, Cash's vision of creating a fund focused on generating real financial returns while improving the wellbeing of underserved communities was realized. Despite her success in bootstrapping the initial fund, Cash had much more work ahead of her. In addition to managing investors and sourcing new deal opportunities, Cash now had to consider how to scale for later funds, and whether to continue to follow the fund's original vision on her own, as she had already proven that she could do, or take on a partner in order to pursue strategic opportunities. Indeed, the real work was just beginning. This case describes the challenges faced in the formation of a sustainable for-profit impact venture capital fund. It covers the origin of the fund; an overview of the fund's structure and terms, investment strategy, early fundraising, and strategic opportunities; as well as a discussion of impact measurement.